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#193627 - 04/11/10 06:57 PM Line of Credit  
Obsaleet  Offline
Joined: Apr 2003
Posts: 362
Hi All,
I have been approched by 2 banks recently wanting my business, aleast thats what they say. After so dicussion I never hear from them. My credit has been losey since we started 15 yrs ago. My question is what do you all do for lines of credit? No numbers just sources and maybe some out of the box thinking!

Thanks Ob

Choose your customers, don't let them choose you.

Business, Office, Estimating, Legal:

#193628 - 04/11/10 07:08 PM Re: Line of Credit [Re: Obsaleet]  
dougwells  Offline

Joined: May 2003
Posts: 1,137
kamloops BC Canada
Be prepared to give them 2 years of your books P&L statements, Pay all your bills on time, good cash flow though bank account.
last 2 years of income tax returns

#193629 - 04/11/10 08:07 PM Re: Line of Credit [Re: dougwells]  
Rewire  Offline
Joined: Feb 2008
Posts: 165
We started by getting a line of credit backed by a CD.

#193633 - 04/11/10 10:29 PM Re: Line of Credit [Re: Rewire]  
Obsaleet  Offline
Joined: Apr 2003
Posts: 362
Rewire we are considering this option. We have been going along fine, but its time to grow and it will take a little money to help iron out the rough spots. I was wondering about private loans. I have read there web sites that will broker loans for both sides, lenders and lendees?

Choose your customers, don't let them choose you.

#193639 - 04/12/10 01:35 AM Re: Line of Credit [Re: Obsaleet]  
Bill Addiss  Offline
Joined: Oct 2000
Posts: 3,878
If you have an Accountant, ask if He has some 'pull' with a local Bank. A good word from him could help you out.


#193644 - 04/12/10 10:02 AM Re: Line of Credit [Re: Bill Addiss]  
Rewire  Offline
Joined: Feb 2008
Posts: 165
If you are looking for working capital then you will have a tough go with the bank.I was talking with my banker and she told me that she could loan money for buildings or vehicles and possibly large tools but not much else.Missouri has a small business loan program for up to 25 grand administered through the state.

#193658 - 04/13/10 02:42 AM Re: Line of Credit [Re: Rewire]  
Tesla  Offline
Joined: Jun 2004
Posts: 1,273
Sacramento, CA
Forget the banks inre working capital.

Check out your trade creditors first...

Also talk to them about local trade conditions and get THEIR opinion.

Expansion at this time is most unwise...

Expand ONLY with good business IN HAND...

Last edited by Tesla; 04/13/10 02:43 AM.


#193659 - 04/13/10 03:26 AM Re: Line of Credit [Re: Tesla]  
Trumpy  Offline

Joined: Jul 2002
Posts: 8,211
SI,New Zealand
When I went into business for the first time, I pretty much went into it blind.
This was before I found ECN.
One thing I found was with banks, you had to really "sell yourself, personally" as to your ability to be able to perform in your capacity as a business owner and electrician.

Banks will not take on a bad risk here, which is pretty much good business sense, I remember taking screeds of paperwork and spending a lot of time with a Business account manager at the bank.

My first attempt at being a business owner crashed and burned, probably through no fault of my own, I was working HUGE hours, but not being paid for the work and when your suppliers aren't getting paid, you have really big problems.

I have since gone back into business for myself, concentrating on only Commercial and Industrial work.
One thing I did learn the last time around, with Domestic work, you are pretty much at the mercy of wether your customer is going to pay or not, regardless of what you have signed before the job started.

I agree with Bill though, your best ally is a good Accountant, I have one who is a good friend as well, which helps.

If there is one thing I can say though, never ever fail to pay your suppliers, they are your life-blood.

{Sorry if I have taken this thread off-topic}

Let's face it, these days if you're not young, you're old - Red Green grin

#193664 - 04/13/10 09:51 AM Re: Line of Credit [Re: Trumpy]  
Obsaleet  Offline
Joined: Apr 2003
Posts: 362
Tesla, I've not seen a slow down in work(knock on wood). The only diffrece has been having to price every job, not as a competitive bid but as a budget thing for the customer. some trim the jobs some leave it alone. I just let my helper go(he kept screwing up), so I am thinking of hiring a more experianced individual and work him into a second truck. My thought is to have funding in place as well as insurance and other incentives.

Choose your customers, don't let them choose you.

#193696 - 04/14/10 08:44 AM Re: Line of Credit [Re: Obsaleet]  
sparky  Offline
Joined: Oct 2000
Posts: 5,308
I've had two 'big banks' (by that i mean local banks connected to huge monopolies) do me wrong here in the last 5 years.

So i moved my biz, and all my accounts to a local credit union.

I find them much more accomodating, and there's no man behind the curtian copout the conglomerates tend to pitch out at the 11th hour (always to THIER advatage)

Come to find out, there's a movement to get away from them>>



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